If you are looking for down payment assistance in GA then the Gwinnett NSP may be a good solution. The Gwinnett Neighborhood Stabilization Program provides affordable housing to low to middle income homebuyers. Gwinnett NSP buys foreclosed homes and make necessary repairs and sells them to new homebuyers. These homes are in very good move-in ready condition by the time the Gwinnett NSP get through with them.
My client in the video purchased a NSP home and the home she purchased received a new energy star new HVAC unit, energy star rated water heater, new energy star rated kitchen appliances, new light/fan fixtures, new counter-tops, new bathroom fixtures, new carpet, new interior and exterior paint, new roof and they even did a chemical barrier treatment for termites. The Gwinnett NSP did an awesome job on this home.
They have available homes in Gwinnett that are priced from $70,000 to $200,000. All Gwinnett NSP homebuyers will receive up to $22,500 for down payment assistance and or closing costs. This programs allows for homebuyers that may be lacking the funds for down payment or it can help lower the monthly mortgage payment through a reduction in the amount financed.
There are two programs that are available. The first is a soft second mortgage of $14,500 for five years at zero interest and no payments with the principal being reduced at 20 percent per year. After 5 years this $14,500 is forgiven and does not have to be paid back. The second choice is a soft second mortgage of $22,500 for 10 years at zero interest and no payments with the principal being reduced at 10 percent per year. After 10 years this $22,500 does not have to be paid back. If the house is no longer the purchasers primary residence then any remaining principal shall be paid back to the county.
How do you qualify? First, you must not currently own residential property and this includes rental property or a vacation home.
- Qualify for a 30 year, fixed FHA first mortgage
- Can only use the down payment assistance on a Gwinnett NSP home
- Complete a 8 hour HUD approved homebuyers course
- Invest one percent of the purchase price towards the purchase of the home
- Be an owner occupant
- Meet the income limits below:
Note: Maximum Household Income From All Persons In the Household
1 person 2 person 3 person 4 person 5 person 6 person 7 person 8 person
$58,200 $66,550 $66,550 $74,850 $89,800 $96,450 $103,100 $109,750
Gwinnett NSP only has a small number of homes at any given time and the down payment money can only be used on NSP homes.
Other down payment assistance programs in Gwinnett County are the FHLB, GA Dream and the Gwinnett Homestretch.
Each program has its pro’s and con’s as some of the program are grants (do not have to be paid back) while others are just a loan.
FHLB $5,000 down payment assistance program is a grant and is forgiven after 5 years. It can also be used anywhere in GA and is an in house program within the Federal Home Loan Bank and not a government program. What that means to you is it is very easy to qualify for (no 8 hour HUD class required) and is not complicated like some of the government programs.
GA Dream down payment assistance program advantage is it allows for buyer to have a higher income limit and its program ranges from $5,000 to $7,500 for down payment. The $7,500 is for people who serve the public such as police, firemen, military and medical employees to name a few. GA Dream disadvantage is it is not a grant so the money does have to be paid back when the house is refinanced or sold. It is also one of the more difficult programs to get the money as you will have to be very patient as the GA Dream underwriters are very particular to say the least.
Gwinnett Homestretch $7,500 down payment assistance program advantage is the down payment money does not have to be paid back if you remain in the house for 5 years as your primary residence. Some disadvantages is sometimes the program runs out of funds and then you are put on a long waiting list. The buyer also has a lot of requirements as well and has to attend an 8 hour HUD class. This program also requires the home to be in Gwinnett county and the home has a list of requirements to pass as well.
It is easy to apply so please contact us today and we can provide you with more detailed information and help you get started.
Mark services the following Northeast Atlanta cities: Alpharetta, Roswell, Milton, Woodstock, Dunwoody, Suwanee, Buford, Duluth, Dacula, Grayson and Lawrenceville Georgia.
About the Author: The above Real Estate information on Down Payment Assistance in Gwinnett County – Gwinnett NSP* was provided by Mark Mitchell. Mark can be reached via e-correspondence at email@example.com or by phone at 404-353-0185. Also visit www.johnscreek-homes.net
Mark Mitchell, Realtor